BOJ Commits to Low Interest Rates through Spring '20

Economy Politics

Tokyo, April 25 (Jiji Press)--The Bank of Japan said Thursday it has decided to maintain interest rates at "extremely low levels" at least through around spring 2020, while keeping its current massive easing policy intact.

The central bank also gave a projection, in a quarterly report adopted the same day, that Japan's core consumer price index will rise 1.6 pct in fiscal 2021, still below its inflation target of 2 pct.

According to a statement issued after a two-day Policy Board meeting from Wednesday, the BOJ decided to continue to impose a minus 0.1 pct interest rate on some of commercial banks' current account deposits at the central bank, while guiding 10-year Japanese government bond yields around zero pct mainly through JGB purchases.

The decision was made by a vote of seven to two.

In the statement, the central bank clarified its forward guidance by committing to very low interest rates "for an extended period of time, at least through around spring 2020," saying it took into account uncertainties over the course of the global economy and the effects of a planned consumption tax hike in Japan in October this year.

[Copyright The Jiji Press, Ltd.]

Jiji Press